George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
The news has given the critics/cynics here some food for thought - eg stevemc - your comments OK - but also support to the likes of Mineralholder's views - also OK.
There seems no one now would seriously be selling, given the positive news on the lack of intention to go private + the discussions with the government on the awaited VAT refund, and it has been possible to buy at 6p since 0800 this morning (personally achieved) - so I guess none of these trades shown so far are sells. The spread and buy/sell on this share have always been inexplicable (to me) so the lowering of the sell to 5.50 merely reflects the hangover of abilty to buy at 6p right now, with also what you could be offered if you did sell.
It takes two viewpoints to make a market in any share, with tactics thrown in on both sides.
I watch here and read all your collective feelings surrounding the methods of raising capital and the clarity of apparent motivations of Mr Poddar. If I am right, the recent share drops have come from very large sales from BAT, as the story continues, as always being their apparently declared intention, so no real surprise there, plus market-makers' readings - perhaps here - of a rising wall of negative comments and queries. However, the share price seems to get compressed towards the low end whilst the spread declares otherwise after such large sales such that many trades shown as sells, from my limited trades in the market, are in fact buys. If this is the case then there is appetite for the shares regardless due to intrinsic value of what the business can provide, and that hasn't materially changed. If cash injection means that production can be maintained and rise to fulfill previous targets indicated to the market then progress of the share price should follow when the money from sales comes in, provided it hasn't all been promised away as interest payments on various capital structures. Current share valuations seem more-or-less a giveaway for the world's requirement of the product.
Raising capital at any critical cash shortage time must always present a CEO with a headache to attempt to satisfy all viewpoints regardless of what they may have believed they could do before, but in any case by dilution this will have created more shares, surely making for a more liquid market. True, the BOD will have taken up a fraction of what have been created, but that leaves the greater proportion for shareholders to snap up.
All the criticisms of Mr Poddar here are fair enough and necessary for the market to try and form their own picture of what he is trying to do and for people to draw their own conclusions - but underneath the observed facts I take the positive view that this is an innovative and materially succeeding enterprise with plenty of future potential. The share price says big share sales of, and all about negative belief in the man's word and intentions - sentiment in the moment despite the company potential - as is always part of the share price 'truth'. You may be wanting to decide what to do with your position in or out of the market right now and the time you want to be involved, but it boils down to:- invest or decline to do so - either way - at these levels, at your peril.
OK so the company has discovered its ore yield may be only 2/3rds of what was expected. However, given that during any company development you'd expect issues to arise and I'd say TG has reacted to this with a reasonable plan accordingly, by the sounds, with this new paradigm you can wrangle and argue and come out as an optimist and look forward to what the plant output becomes or a pessemist with these results and feel hard done by and get out - but that reflects real life issues and that's what makes the market. It is always better to have a CEO you 'know', (and here we may judge that we have one with a good reaction and plan to the new situation), than anyone totally unpredictable.
With young companies you have to expect the unexpected and trust that suitable operational plans are put in place accordingly. So here with these, we will all (shareholders and onlookers) have to see what happens.
Meanwhile the revenues are indisputably starting to speak for themselves., trending where expected.
I don't know why the quote (eg: 39-40p) seems sometimes out of kilter with the buy price obtainable (circa 39.3p) - seemingly on the sell side - but it is at present, so buying still ongoing despite the red indicated here.
Thanks for your comments BigBiteNow - a very good rational overview and opinion which I have found useful as a state- of-play summary.
32.74p buys are currently showing as sells. This sort of thing seems to happen quite often with this share.
Apart from the superb progress described, there we have it - no call on shareholders to stump up cash for the existing cash-generating project developments. It will be/is all self-funding as the company strategy delivers on its plans and the pieces are just falling into place. So we already have a working, progressive company with its feet on the ground and lots of good news to come which cannot but just bolster its financial position and attractiveness for future shareholder value growth. We must wish Mr Podar and team all the best to continue with their best efforts for the unfolding value delivery.
Whatever. As labelled as buys or sells, trades are not always accurately depicted for this share and on personal observation of the transaction prices shown here, I'd say that people are looking on the bright side as I reckon many of the red sells are buys, mine included.
I wouldn't expect a company as business development-progressive as TGR postponing its results because their accounts weren't quit ready after announcing their intention to publish - too much unnecessary intrigue could ride on that if there were any real negatives in the air.
IMO it is becuase they have something not quite ready to announce - an external decision process in train for example, that was expected in time for September 12, or other preparation that is material to the share price and they would, for our sake, like to include it.
Hi Glengarth - Thanks for the article link to CATL. - I'd not seen that.
It's a pretty convincing picture of high and higher graphite demand for some time to come, (certainly in China's markets and probably echoed across the major economies) given it is the commonly-used material for anodes in Lithium-ion batteries. Tirupati are clearly building production capacity as rapidly as possible to meet increasing market demand, for wherever the orders may come from. It should be a very interesting year to learn of the initial actual yields from the effort and the cash flow that is generated as a result. Any graphene developments would therefore be a bonus. Even the existence of an R&D facility into cutting edge tech is a fantastic plus point for investors in the company.
With regard to battery tech, TGR is needing to invest in R&D for its graphene potential as it appears that an emerging battery tech is aluminium and graphene which could entirely displace the lithium-ion rush. I know this is perhaps an 'inflammatory' assertion, but Li-ion are a clunky, relatively low energy density fire risk tech. I know a guy in the US (who I used to teach physics) who has had to research the electronics for control of potential heat and fire risk in Li batteries and attendant circuitry. It is a real problem. Aluminium doesn't seem to have the fire risk and also has 3 times the electric charge per atom, being trivalent. This and its consequent possible 3x energy density compared to lithium, together with lack of weight needing to be given over to battery fire-risk managment gives a great potential increase in range for cars, comfortably giving the EV market a no-brainer to switch to.
So - all over the world they are researching the pants off battery tech to achieve something better than Li-ion. However, graphite, in the current requirement for Lithium-ion batteries will likely have its day for a number of years yet (with current tech and manufacture) which is why TGR will do very nicely for a good while on the graphite front alone. Meanwhile, if TGR can pull something out of its R&D centre bag at least along the lines of its work with Rolls Royce on graphene/aluminium conductors then TGR will have its place among sure-fire tech solution winners and, depending upon patents, would make TGR shareholders a fortune. The RR link-up is to produce an Al/graphene composite material which would replace copper in the wiring of aircraft and elsewhere, giving avionics a much-needed energy-saving boost in aircraft weight reduction. The same would be true for an implementation in cars of course, and the tech would go mainstream.
Exciting times.
GLA
I think we could get some spike to 160p+ if any positive R&D with Rolls Royce news were to arise and then it'd enter a period of significant comment and the consequent volatility like earlier last year - but I'd say without that it will settle down to a new floor when we have results with good sales figures that could see a significant re-evaluation of the company (currently ~£66m) at maybe £100m+ pointing towards 117-120p.
This is one of the best BBs for tit-for-tat sniping I have come across recently, some of which is highly entertaining, but all of those interactions are time-wasting b*ll*x of course - especially to the writers creating long spiels of anti-Punter angst, and not at all persuasive to anybody.
Wishing to try and contribute positively and riling no-one, (- actually I couldn't care less), my point here is....
if Budd is so hopeless, then shareholders here, if collectively holding sufficient shares, (> 50%) can quite legally by company rules, organise a meeting and vote to chuck him out - as happened highly beneficially with Valirx. I don't know the ins and outs but it is possible. You need lots of PIs including all large holders sympathetic to the cause and get it organised. That's the power of individuals owning shares - the BOD are only there by the grace of shareholders' votes. They otherwise remain in post by default and/or apathy.
It seems to me the share price cannot support the crushing weight of the perception of failure and disappointment in products and their sales, as people who bought at 17-19p get out with a good profit and recent buyers stem their losses from a misplaced earlier purchase, with a 'goodbye' sell-out. This may be worth a £100 punt when the company value reaches sub £10 million - but it currently hasn't any sparkling prospects, if you read its lips (dispassionately) - the Final Results from 9th Nov 21.
Otherwise hang in there and just hope for a change in the sales prospects (covid and testing - where now?) and abilities of the company to sell if an opportunity presents itself.
I didn't invest here - I punted - at 74p and at 39p - and was out very soon afterwards (45 minutes after 74p) quite positively thankyou. But that was back when I judged it was before many people's patience had run out, and perhaps not misplaced doom and gloom had set in.
Meanwhile, the comments here are just a passtime, having no influence on whether any sales will possibly occur. Holders - you can only hope - else why not sell out and move on to a new AIM story elsewhere with your cash? It would possibly be a better experience over there.